Resellers wary as Cisco reveals plans to recruit
Channel partners shocked as vendor unveils plans to swell reseller ranks by over 1,000
Networking giant Cisco has sent ripples through its channel by signing a distribution agreement with Westcon to target 1,000 new UK SME resellers.
Westcon will distribute Cisco’s range of converged advanced technologies to its network of security and voice resellers in the SME market.
Cisco already has established UK distribution agreements with Com-puter 2000, Azlan, Comstor and Ingram Micro, but claimed Westcon can tap new SME security and convergence VARs.
John Donovan, managing director of channels at Cisco UK and Ireland, told CRN: “If there is one area of opportunity we want to catch its convergence and security, and Westcon has the contacts and expertise to do this.”
Bernie Dodwell, alliances manager at Westcon, said: “There are 800 accounts which we deal with that [sister company] Comstor doesn’t, and we have around 250 SME resellers that could be interested in Cisco. That is the potential pool we will be addressing that Cisco is not.
“There are a lot of Cisco VARs, but we will be aiming at the specialist high-margin technology where the market is not saturated,” claimed Dodwell.
However, the announcement was not well received by the rest of the channel.
Lee Perkins, UK director of Cisco distributor Azlan, said: “We already have a dedicated team for both convergence and security.”
Mike Lawrence, managing director at Cisco reseller Bentpenny, said: “It is the most ridiculous statement I have ever heard. We could end up with a Cisco VAR in every village in the UK.”
Paul Renucci, managing director at Cisco Gold Partner Damovo, said: “The market is saturated and I can’t imagine there are 1,000 VARs who want to do Cisco as there is not a lot margin out there.”
Jess Thompson-Hughes, managing director at networking distributor React Technologies, said: “It is very difficult to make money on Cisco as the market is already saturated. You would have to think twice before becoming a Cisco VAR.”